European sugar producers called on Monday for the EU's planned sugar reform to include at least a partial link of subsidy to production, while accepting the likelihood of cuts in minimum prices and national quotas.
Sugar is the EU's last key farm regime to survive virtually untouched since its launch in the late 1960s. The European Commission, the EU's executive arm, now plans a huge shake-up - something that critics of the policy have demanded for years.
"CEFS recognises that there are likely to be some price and volume cuts to adapt the European sector to internal and external pressures," the Brussels-based EU sugar producers' body CEFS said in a statement.
"CEFS considers that the income paid to compensate growers for the beet price cuts should be at least partially coupled to secure beet supplies and ensure the sustainability of sugar beet factories," it added.
In its current form, the system helps to keep internal prices at more than three times above the world market. Existing sugar policy is due to expire in 2006 and involves a complex system of national production quotas.
The Commission has tabled three options for sugar reform: to keep the status quo, cut internal prices with a phase-out of national production quotas eligible for subsidy or full liberalisation. It plans to issue a document sometime next month that is expected to narrow down these options to just one.
CEFS called for compensation for EU sugar growers who decided to quit the industry.
"CEFS recommends at the same time that there should also be financial compensation available for the industrial sugar manufacturers to compensate them for reductions in their sugar production including in case they decide to partly or fully exit from beet and sugar production," it said.